Dollar mixed on further intervention, eurozone rate hike concern

10:17, March 22, 2011      

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The U.S. dollar traded mixed against major currencies in late New York trading on Monday as investors feared of further intervention by the Group of Seven and a possible interest rate hike in the eurozone.

The Japanese yen snapped its winning streak against the dollar after the Group of Seven intervened in the currency market last Friday. It extended its losses against the greenback in New York trading on Monday as investors still feared that the G-7 would conduct another round of intervention.

As the situation of Japanese nuclear reactors was stabilizing according to Nuclear Regulatory Commission, the yen's repatriation concern which was largely responsible for yen's rapid appreciation last week, was also eased.

Meanwhile, the euro extended its gains on Monday against the dollar as the European Central Bank (ECB) President Jean-Claude Trichet hinted that the ECB remained prepared to raise its official interest rate next month, despite that the disasters happened in Japan might hurt the economy.

Some strategists noted that as the western world struck against Moammar Gadhafi's forces over the weekend, the safe-haven currencies such as the dollar and Swiss franc would regain favor in the markets.

In late Friday trading, the dollar bought 81.05 yen, comparing with 80.96 late Thursday, and the euro rose to 1.4226 dollars from 1.4159.

The British pound also rose to 1.6315 dollars from 1.6219. The dollar rose from 0.9017 to 0.9046 against Swiss francs, but fell to 0.9785 Canadian dollars from 0.9861.

Source: Xinhua
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